Robo-advice needs genuine interaction: Midwinter

robo-advice financial planning financial advice

23 March 2016
| By Daniel Paperny |
image
image
expand image

Robo-advice offerings today do not offer any genuine interaction and more work is needed to help create a seamless interface with clients, Midwinter managing director, Julian Plummer, says.

As Midwinter gears up to launch its digital advice framework next month, Plummer said that automated investment tools represented an opportunity for greater innovation in financial planning.

“The confidence in robo-advice is still developing. All robo-advice [today] is scaled advice. It is objectives-based, because it only has one risk profile and it is self-servicing,” Plummer said.

A key feature of Midwinter's new digital advice framework is that all the data that its cloud-based AdviceOS platform has on a user will be transported across into their digital advice account.

This will allow users to have greater insights into individual spending habits and behaviours in real-time as well as being able to seamlessly escalate from self-service all the way up to face-to-face advice, he said.

"We are introducing this concept of stochastic returns into [our] projections to allow the users the probability of advice and the probability of getting their goals…what you want to do with this digital advice framework is get every combination of advice available," Plummer said.

"It's more of a cohesive approach than just robo-advice. What we want to do is make financial planners be [at] the centre of their clients' financial universe and this is the tool they can do it with," he said.

According to Plummer, another key feature of the framework is its ability to produce a statement of advice (SOA) in real-time.

"Digital SOAs are going to be the lingua franca, the language with which we speak to our customers. We want to be the default choice for financial planning software in Australia," he said.

"What we want to do is make it as engaging as possible but at the same time still have all the [features] that a typical SOA has, such as advice fees, service fees and investment fees."

A key focus for Midwinter's roadmap for the digital advice framework is now the integration of self-managed superannuation funds via third parties using application programming interfaces (APIs).

Plummer confirmed Midwinter will begin pilot programs for the digital advice framework in the first week of April.

Read more about:

AUTHOR

Recommended for you

sub-bgsidebar subscription

Never miss the latest news and developments in wealth management industry

MARKET INSIGHTS

JOHN GILLIES

tHOSE 989 WHO ARE CEASED WILL GO ON TO LIVE A LONG AND HEALTHY LIFE JG...

4 days 13 hours ago
Chris Cornish

What a sticth-up. Looks like Labor Senator Jess Walsh follows Stephen Jones who follows what the industry super funds ...

4 days 10 hours ago
Peter Swan

This report is a blatant display of far-left factional partisanship, treating superannuation funds as state property and...

4 days 11 hours ago

ASIC has cancelled the AFS licence of a Sydney wealth firm, the fifth Sydney firm to see a cancellation since the start of the year....

2 weeks 5 days ago

More than 20 winners from the funds management industry have been crowned at this year’s awards....

1 week 5 days ago

ASIC has obtained interim orders from the Federal Court to freeze the assets of a registered managed fund and prevent its former director from leaving Australia. ...

6 days 10 hours ago

TOP PERFORMING FUNDS

ACS FIXED INT - AUSTRALIA/GLOBAL BOND